News Flash - 31 January 2007

The Group of States against Corruption
(GRECO) publishes report on Bosnia and Herzegovina

The Council of Europeís Group of States against
Corruption (GRECO) has published today its Second Round Evaluation Report on
Bosnia and Herzegovina (link
to report). The report is made public with the agreement of the
authorities.

Bosnia and Herzegovina continues to make substantial
amendments to its criminal legislation and the organisation of the judicial
and prosecutorial systems to combat corruption. That said, there is a clear
need to enforce the new legal framework and this calls for improved
coordination, effective cooperation and extensive training of the agencies
involved in the detection, investigation and prosecution of corruption.

While significant efforts have been made in recent
years to counter corruption through repressive mechanisms, the authorities
are currently putting in place a number of measures of a more preventive
character, including the adoption of legislation ensuring public access to
official documents, the development of a Strategy for the Fight against
Corruption and Organised Crime, the launching of public administration
reform, etc. Implementation and regular monitoring of the afore-mentioned
measures remains crucial for an effective fight against corruption.

GRECO recommends, inter alia, further
improvements with respect to efficient monitoring of the implementation of
the anti-corruption strategy and its action plan by an independent body,
ethics training for public officials, review of financial declarations and
protection of civil servants reporting suspicions of corruption. Turning to
the registration of legal persons, GRECO stresses that it mirrors the
fragmented manner of governance at State, Entity and Canton levels.
Registration is therefore a weak instrument for controlling and preventing
legal persons from involvement in corruption and other illegal activity. The
introduction of corporate liability is commendable; however, the provision
of specific training to investigators, prosecutors and judges would
contribute to improving the effectiveness of the existing legal framework.
There is finally a need for greater collaboration with professionals in the
private sector (e.g. auditors, accountants), to encourage and assist them in
meeting their obligation to report corruption.

Measures taken by Bosnia and Herzegovina to implement
these recommendations will be addressed by GRECO in the context of a
specific compliance procedure in the second half of 2008.